Question
Preston HillBed & Breakfast Accounting Transactions for the Monthof April 1, 2018 Date Description April 1, 2018 Jon Edwards and Dan Fogle each invested $20,000
Preston HillBed & Breakfast Accounting Transactions for the Monthof April 1, 2018 Date Description April 1, 2018 Jon Edwards and Dan Fogle each invested $20,000 in a corporation to run Preston Hill Bed & Breakfast. Each were issued 2,000 shares of $10 par value common stock. April 1, 2018 The partners leased a fully furnished, established, five-bedroom room Bed & Breakfastfor 3 years at $3,000 per month. The landlord required a payment of$12,000 for 4 months of rent plus a $3,000 security deposit. April 1, 2018 Purchased a minivan valued at $35,000 with a $10,000 down payment and a 3-year $25,000 note payable with an annual interest rate of 5%. The minivan has a 5-year useful life and no salvage value. The monthly payment including principal and interest is $749.27 April 1, 2018 Neither partner can cook but arranged with the restaurant next door (Dora's Diner) to provide breakfast for the guests at $10 per person per day. Grace's Diner will bill the B & B at the end of each monthfor the meals provided. They must pay Dora's Diner before the 10th of the next month. April 1, 2018 Purchased used deck furniture for $3,000 cash. The furniture has a 6-year useful life and no salvage value. April 3, 2018 Ace Computers, a local company, arranged with the B & B to provide rooms for their out of town weekday visitors at a rate of $100 per night. The B & B will bill Ace at the end of themonth for rooms used. April 6, 2018 Purchased $875 of office supplies on account from ABC Office Supply. April 8, 2018 Paid invoice from Insurance company for 4 months of coverage beginning April 1, 2018 for a total of $1,200. April 8, 2018 Received $1,500 in cash and credit card receipts for room rentals for April 1 - 8, 2018. April 8, 2018 Received reservation deposits as follows: Smith Family - $250 for April 25 - 26, 2018 Harris Family - $500 for April 29 - 30, 2018 Mester Family - $375 for May 3 - 5, 2018 April 15, 2018 Paid $1,500 in wage expense for the period April 1 - April 15, 2018. April 15, 2018 Received $1,200 in cash and credit card receipts for room rentals for April 9 - 15, 2018. April 20, 2018 Received reservation deposits as follows: Plourde Family - $250 for April 25 - 26, 2018 Friedman Family - $200 for April 29 - 30, 2018 Brooks Family - $255 for June 3 - 5, 2018 April 21, 2018 Received $2,050 in cash and credit card receipts for room rentals for April 16 - 21, 2018. April 27, 2018 Refunded Harris Family deposit paid on April 8, 2018 less $50 Administrative Fee. April 29, 2018 Paid ABC Office Supply invoice for purchases on April 6, 2018. April 30, 2018 Van Payment # 1 - Total $749.27 (Principal = $645.10; Interest = $104.17) April 30, 2018 Paid $1,500 in wage expense for the period April 16 - April 30, 2018. April 30, 2018 Paid credit card in full with the following charges incurred in April 2018:Licenses and Fees - $100; Printing - $275; Dues - $100; Uniforms - $325; Advertising $560; Postage $125 April 30, 2018 Sent $975 invoice to ACE for rooms rentedApril 1, 2018 - April 30, 2018 April 30, 2018 Received invoice from Grace's Diner for $380. April 30, 2018 Paid dividends to shareholders in the amount of $1,500.
The general journal entries
April 1, 2018: To record the capital invested
Debit, Cash-----------------------------------$20,000
Credit, Common stock----------------------------------$20,000
April 1, 2018: To record the prepaid rent and security deposit on the leased property
Debit, Prepaid rent--------------------------$12,000
Debit, Security Deposit---------------------$3,000
Credit, Cash-----------------------------------------------$15,000
April 1, 2018: To record purchase of a Minivan
Debit, Minivan------------------------------$35,000
Credit, Cash-----------------------------------------------$10,000
Credit, Note Payable-------------------------------------$25,000
April 1, 2018: To record the Purchase of used deck furniture
Debit, Deck furniture------------------------$3,000
Credit, Cash-----------------------------------------------$3,000
April 6, 2018: To record Purchased office supplies on account from ABC
Debit, Office Supplies----------------------$875
Credit, Accounts Payable--------------------------------$875
April 8, 2018: To record Prepaid Insurance
Debit, Prepaid Insurance------------------$1,200
Credit, Cash------------------------------------------------$1,200
April 8, 2018: To record cash and credit card receipts for room rentals for April 1 - 8, 2018
Debit, Cash----------------------------------$1,500
Credit, Room rentals Revenue--------------------------$1,500
April 8, 2018: To record reservation deposits received ($250+$500+$375)
Debit, Cash---------------------------------- $1,125
Credit, Unearned Revenue-------------------------------$1,125
April 15, 2018: To record wage expense paid for the period, April 1 - April 15, 2018.
Debit, Wages Expenses--------------------$1,500
Credit, Cash-------------------------------------------------$1,500
April 15, 2018: To record cash and credit card receipts for room rentals for April 9 - 15
Debit, Cash-----------------------------------$1,200
Credit, Room rentals Revenue--------------------------$1,200
April 20, 2018: To record reservation deposits received ($250+$200+$255)
Debit, Cash---------------------------------- $705
Credit, Unearned Revenue-------------------------------$705
April 21, 2018:To record cash and credit card receipts for room rentals for April 16 - 21, 2018
Debit, Cash----------------------------------$2,050
Credit, Room rentals Revenue--------------------------$2,050
April 27, 2018: To record a refund to Harris Family for deposit paid on April 8, 2018 less Administrative Fee
Debit, Unearned Revenue-----------------$500
Credit, Administrative Fee---------------------------------- $50
Credit, Cash---------------------------------------------------$450
April 29, 2018: To record cash paid to ABC Office Supply for purchases made on April 6, 2018
Debit, Accounts Payable-------------------$875
Credit, Cash---------------------------------------------------$875
April 30, 2018: To record wage expense paid for the period April 16 - April 30, 2018
Debit, Wages Expenses--------------------$1,500
Credit, Cash-------------------------------------------------$1,500
make general ledger
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